[SMM Daily Review] Chrome Ore Prices Continue to Rise, Ferrochrome Companies Stand Firm on Quotes

On April 2, 2025, the price of high-carbon ferrochrome in Inner Mongolia was quoted at 8,100-8,300 yuan/50 mtu, up 100-200 yuan/50 mtu from the previous trading day. Meanwhile, the price of high-carbon ferrochrome in Kazakhstan was quoted at 8,800-9,000 yuan/50 mtu, and the price of ferrochrome in India was quoted at 8,300-8,600 yuan/50 mtu, both up 200 yuan/50 mtu from the previous trading day. Recently, ferrochrome prices have shown a strong upward trend. Recently, chrome ore prices have been continuously rising. Today, the price of 40-42% South African powder at Tianjin Port was quoted at 58-60 yuan/mtu, up 1.5 yuan/mtu MoM, while the futures price was quoted at $275-290/mtu, up $7.5/mtu WoW. Due to the concentration and scarcity of spot resources for South African powder, ferrochrome producers face difficulties in procurement, and high-price transactions have intensified market bullish sentiment. The production costs of ferrochrome producers continue to rise, with significant cost support driving the continuous increase in ferrochrome prices. Additionally, the April steel procurement price of Tsingshan was settled at 7,595 yuan/mt, up 600 yuan/mt MoM, in line with market expectations, further boosting the production enthusiasm of ferrochrome producers. SMM statistics show that stainless steel production in April was approximately 3.55 million mt, increasing the demand for ferrochrome and strengthening producers' sentiment to stand firm on quotes. Currently, there is a shortage of low-priced resources in the market, and it is expected that the rise in chrome ore prices will continue to drive ferrochrome prices upward, with the ferrochrome market maintaining a strong upward trend in the short term.